It will take a while for all of the ramifications of Siemens Enterprise Networks' (SEN's) 49-51% partnership with the Gores Group to become clear, but the outcome in the wireless space is pretty straightforward. In any combination of this sort the dreaded s-word, "synergy", will quickly enter the discussion and in the wireless space there is some obvious overlap between Siemens and joint venture partner Enterasys.
It will take a while for all of the ramifications of Siemens Enterprise Networks' (SEN's) 49-51% partnership with the Gores Group to become clear, but the outcome in the wireless space is pretty straightforward. In any combination of this sort the dreaded s-word, "synergy", will quickly enter the discussion and in the wireless space there is some obvious overlap between Siemens and joint venture partner Enterasys.Enterasys' core product line is built around LAN switches, routers, network access control, and intrusion detection systems, but they also have the RoamAbout WLAN switch product line, which is provided by Trapeze Networks; Trapeze is a direct competitor to Siemens' Chantry Networks division. The Enterasys-Trapeze relationship got a jolt last month with the acquisition of Trapeze by Belden. In an open letter to customers that accompanied the announcement, Enterasys talked glowingly about the benefits to customers and the strength of their ongoing relationship--we'll see how that goes.
The obvious outcome is that Enterasys cuts its ties to Trapeze and starts pushing the Chantry line. The only questions are how quickly will this come about, and what additional functionality will we get from an integrated Siemens IP PBX/UC-capable/wired-wireless infrastructure combination?
The picture with regard to other elements in the wireless area is more confused. WLAN switch solutions today incorporate elements from specialty suppliers or "technology partners" for functions like location AeroScout, Ekahau, and Newbury Networks) and wireless intrusion detection (AirMagnet, AirDefense, AirWave, AirTight). Those alliances are also in a state of flux. AeroScout was included as a technology partner in Cisco's Motion Architecture earlier this year, so that will lessen their appeal with everyone else. Motorola announced this week that they are acquiring AirDefense, and as Motorola also makes WLAN switching gear, that might take AirDefense out of the picture for their competitors.
If we include the wired network in the picture, an Enterasys-Siemens combination is not likely to shake the networking market to its roots. Cisco still rules the networking roost, and the Siemens-Enterasys combination is not going to change that to any great degree. For the majority of customers, the configuration of a UC-capable IP PBX solution will still find Cisco infrastructure products at the core.
However, the wireless market is in a much earlier stage of development and the outcome is not so certain. Siemens might still be able to deliver a more functional WLAN voice, fixed mobile convergence and mobile UC solution through Chantry and their Mobile Connect offering than Cisco can with Agito and the other partners in their mobile ecosystem. So even though the wired network might be Cisco, Siemens' could make a strong case that the important area of mobility would be better served by their wireless solution that features strong ties to their OpenScape unified communications platform.
On the macro level, the continuing evolution of the PBX business is characterized by a migration toward software over hardware as the key differentiator, and Siemens is well positioned for that fight. Siemens' ability to deliver their own infrastructure from Enterasys may become less and less important, as customers shift from buying iron to buying solutions. In the interim, Siemens will be able to deliver the full UC-capable/IP PBX solution including the wired and wireless network infrastructure it operates on. The key to increasing their presence in the hardware part of the business will hinge on their ability to leverage the software to deliver better and more functional solutions in an all-Siemens-Chantry-Enterasys environment.
The best news for SEN is that they are now out from beneath the cloud of uncertainty that has dogged them in every bid they've responded to. With their business direction defined, SEN is now free to push their wares on an equal footing with every other supplier.
